The friend will talk with another financial advisor, maybe more. Everyone else should go through the same process, reaching the same conclusion. The friend has now spoken with two or three people in total, but the solution is still the same as the one the first advisor provided. Advisors #2 and #3 are unconsciously reinforcing the advice of the first advisor.
A rational person realizes they received good advice from the first advisor (who they know personally). They often return to that advisor announcing “I decided to take your advice after all.”
You Are Not Doing This for Yourself
It is human nature to want to provide for your family. Every parent wants their children top have the best possible start in life. They want them to have a better life. They will sacrifice to make this happen. This is true for cultures around the world.
This California advisor would meet with the prospect and spouse. He would gather the necessary information, prepare a financial plan and present his proposal. This is as personalized as possible and might include a “family index” to measure progress towards goals. The advisor could tell when there was hesitancy because some of the investment concepts were new or the couple was cost sensitive.
He would “step out of his role” and speak frankly: “The objective is not to outperform the indexes or make money for yourself. The objective is to provide for your family and your children.” He would stop talking.
Now the prospect sees things from a different perspective. Something subtle also happens. Not agreeing with your suggestions can come across as not wanting to provide for their family and their children. This might also swing one half of the couple over to the advisor’s side of the conversation.
These strategies have been around for years. If you are seeing them for the first time, they may be a good fit for the right situation.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.